Interest in Tesla has cratered over the last couple of years, and it seems there may be one big factor: the man at the top.
Market intelligence firm Caliber monitors “consideration scores” for brands, amount of consumer interest that translates into potential buyers. According to data that was provided exclusively to Reuters, Tesla’s consideration score has dropped to a mere 31% in February, down from its peak of 70% in late 2021.
Unfortunately for the EV maker, Elon Musk appears to be a big factor in the company’s score dropping.
“It’s very likely that Musk himself is contributing to the reputational downfall,” Caliber CEO Shahar Silbershatz told Reuters.
Musk, once the poster child for the enigmatic tech CEO stereotype, has increasingly been mired in controversy since his acquisition of Twitter. Musk has been criticized for a messy branding change, mass layoffs, Twitter defaulting on leases and agreements, not honoring severance agreements with former execs, and more. Musk has also been in hot water for banning journalists who disagree with him from Twitter.
The cumulative impact has been devastating for Tesla, with some prominent investors calling for a change of CEO as Twitter’s distractions have increasingly taken a toll on the EV maker.
KoGuan Leo, one of Tesla’s largest individual shareholders, was one of the first to start beating that drum in late 2022:
Elon abandoned Tesla and Tesla has no working CEO
Tesla needs and deserves to have working full time CEO
What Tesla BOD should do, do nothing? Elon will find his own successor under BOD independent supervision https://t.co/AJSvij9ncP
— KoGuan Leo (@KoguanLeo) | December 14, 2022
If Tesla’s growth stagnates, and the cause continues to be Musk, Leo’s call for action may gain significant traction.